Ponzi schemes shut down.

[Dave Hounddriver]

1 hour ago, Mike J said:

the "A" winners

"A" for Amway?  There are always variations on a theme.  This current one hides behind the clergy, who have been taking from the poor for so long that the populace figures it is the right thing to do

[hk blues]

5 hours ago, Mike J said:

The losers far outweigh the winners.  

Only In number. But not in terms of actual money - Ponzi schemes are zero sum so the only money that can be distributed is that which is invested.  

[Mike J]

1 hour ago, hk blues said:

Only In number. But not in terms of actual money - Ponzi schemes are zero sum so the only money that can be distributed is that which is invested.  

Maybe we each have a different definition of zero sum.  I define zero sum as total sum invested  is returned to the investors.  Some will gain and some will lose but ALL the dollars or pesos go back to someone who invested.  That is not how a ponzi scheme works.  The crooks that started the scheme are not investors, there only purpose is to skim off money until the scheme collapses.  The scheme does not "make money" with the investors capital.  It returns a portion of the original investment to lure in more participants.

 

[hk blues]

1 hour ago, Mike J said:

Maybe we each have a different definition of zero sum.  I define zero sum as total sum invested  is returned to the investors.  Some will gain and some will lose but ALL the dollars or pesos go back to someone who invested.  That is not how a ponzi scheme works.  The crooks that started the scheme are not investors, there only purpose is to skim off money until the scheme collapses.  The scheme does not "make money" with the investors capital.  It returns a portion of the original investment to lure in more participants.

 

I think we're on the same page in terms of what zero sum means - how we define those who start Ponzi schemes may be different in that I consider them as investors in the loosest sense of the word

[Arizona Kid]

C,mon guys..if it sounds too good to be true run away! Are people still that gullible?

[hk blues]

45 minutes ago, Arizona Kid said:

C,mon guys..if it sounds too good to be true run away! Are people still that gullible?

Funny you should say that - i have a sure-fire scheme that will make us both rich - PM for details! 

Seriously though, i stand by my earlier comment that nobody shares great money making ideas with strangers 

[Rayj]

the Way to make a small fortune is to start with a big one

[Jack Peterson]

32 minutes ago, Rayj said:

the Way to make a small fortune is to start with a big one

 To the Philippines 

[Dave Hounddriver]

3 hours ago, Arizona Kid said:

C,mon guys..if it sounds too good to be true run away! Are people still that gullible?

So if a bank tells you they have a mutual fund that you can invest in, and historically it makes 20 % per year, does that sound too good to be true?  What about if I tell you I am a fund investor and historically I make 20% per year, does that sound too good to be true?

Which one is more likely to be a Ponzi scheme?

When you think you have the answer, Google "Philippine rural banks Ponzi scheme 2008".

It is interesting that you use that old saying because people told me that same story before I moved to the Philippines.  I told them how great it was here and they said: "That sounds too good to be true, I would not go there if I were you".  It was great back then.  Perhaps that was because there were not so many foreigners here.

[nor cal mike]

5 hours ago, Arizona Kid said:

C,mon guys..if it sounds too good to be true run away! Are people still that gullible?

Unfortunately common sense is not very common anymore.